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Aerospace Dynamics will invest $165,000 in a project that will produce the following cash flows. The cost of capital is 11 percent. (Note that the

Aerospace Dynamics will invest $165,000 in a project that will produce the following cash flows. The cost of capital is 11 percent. (Note that the fourth years cash flow is negative.)

Year Cash Flow
1 $ 58,000
2 65,000
3 62,000
4 (59,000 )
5 125,000

a. What is the net present value of the project? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 2 decimal places.) b. Should the project be undertaken?

yes

no

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